Greek Power Prices Surge, Raising Prospect of Higher Electricity Bills

Adding to the pressure is another bout of volatility in Europe’s energy markets, with natural gas trading at around €80 a thermal megawatt-hour.

Greece’s wholesale electricity market is entering the second half of September under sustained pressure, raising the prospect that higher energy costs could soon filter through to households and businesses.

Wholesale power prices have remained elevated during the first half of the month, while a renewed rise in European natural-gas prices is adding to concerns. For Greece, where gas-fired plants still play an important role in electricity generation, international energy shocks can quickly feed into domestic power prices. Data from the Hellenic Energy Exchange show the day-ahead market clearing price at €186 a megawatt-hour. Between Sept. 1 and Sept. 14, 2026, the average price stood at €158.97 a megawatt-hour, with sharp fluctuations from one day to the next. Prices reached as high as €349.87 a megawatt-hour and at times fell to zero. The average of almost €159 shows that electricity remains expensive in Greece’s wholesale market. If prices remain at these levels, some of the increase is likely to be reflected in retail tariffs, although the timing and scale will depend on suppliers’ pricing strategies and broader market conditions.

Adding to the pressure is another bout of volatility in Europe’s energy markets, with natural gas trading at around €80 a thermal megawatt-hour. Gas-fired plants remain important in setting electricity prices, particularly when renewable generation is insufficient to meet demand. The relationship isn’t automatic. Higher gas prices don’t necessarily translate into an equivalent increase in electricity bills. Demand, renewable output, electricity imports and exports, and the broader generation mix all influence the final wholesale price. Greece’s rapid expansion of renewable energy has reduced its reliance on fossil fuels, but hasn’t eliminated it. Gas-fired plants remain critical when wind and solar generation falls short, leaving the electricity market exposed to international gas-price swings.

Athens, meanwhile, is looking further ahead. The government is targeting a gradual 30% reduction in retail electricity prices between 2027 and 2029, largely through investment in electricity networks, storage and energy efficiency. A €200 million battery-storage subsidy program is planned for 2027 and 2028, while a key public-service electricity charge will be cut by 50% from January 2027 for consumption of up to 500 kilowatt-hours. The government is also preparing a €1.2 billion home energy-efficiency program covering 62,000 residences and a €930 million program for heating systems.

The problem is timing. Wholesale prices are already elevated, while many of the measures intended to reduce electricity costs won’t take effect until 2027 or later.